Professional Documents
Culture Documents
8. Marketing Strategies………………………………………………………………………………….
12.Conclusion……………………………………………………………………………………………….
13. Bibliography……………………………………………………………………………………………..
Executive Summary
This Project report tries to take a look on various aspects on Marketing and study of Marketing strategies
adopted by Tata Motors Limited. We settled for Tata Motors Limited because it Established under the
parent Company. Tata Group. In1945. Tata Motors Limited become India’s largest automobile Company.
It was the first Indian automobile company to list on the New York Stock Exchange.
Tata Motors began manufacturing commercial vehicles in 1954 and entered the passenger vehicles market
segment in 1991.
The motors began manufacturing commercial vehicles in 1954 and entered the passenger vehicle market
segment in 1991.
In 2005,Tata Motors acquired a 21% stake in Hispano Cartocera. a reputed Spanish bus and coach
manufacturer. In May 2009. Tata Motors introduced ushered in new era in the Indian automobile industry.
In keeping with its pioneering tradition, by unveiling its new range of word standard trucks. In their
power, speed. Carrying capacity. Operating economy and trims, they will introduce new benchmarks in
India and match the best in the world in performance at a lower life-cycle cost. Tata Motors now ranks
second in India, s passenger vehicle market. Hence a detailed study at the marketing strategies adopted by
Tata Motors gives us an excellent learning opportunity.
Objectives
Company Overview
The Tata Motors group is a passenger and commercial vehicle manufacturer based in India. The Motor
group Ws established in 1945 as part of the larger Tata group. They have long been known for their
commercial vehicles and in the past ten years entered into the passenger car Market. Currently. Tata
motors has a line of live passenger vehicles and a large line of commercial vehicles producing pickups,
trucks, tractors trailers tippers, and buses, Both product lines of the Tata Motors group have been success,
but much of this has been built upon the more deeply established commercial vehicles product line.
Tata Motors commercial line has been established for several years in many market segments such as
Europe. Africa, The Middle East, Australia, Southeast Asia, and South Asia. Tata Motors has expanded
their business and market share around the world through a seri of acquisitions. In 2004, they acquired
Daewoo commercial vehicle Company in South Korea which was South Korea’s second largest truck
manufacturer. This acquisition gave Tata Motors a significant presence in the Korean market. They have
also entered into joint ventures with companies such as Thonburi Automotive in 2006, which allowed
them to manufacture and market pickup trucks in Thailand. **We hink it makes sense for Tata to expand
through acquisition (as it tea and steel ) than spend a decade to build the business (Lehman Brothers). The
commercial vehicles area of the business has certainly been how Tata Motors have built their reputation.
With commercial vehicles accounting for 80-85% of company profits. They are beginning to employ a
similar technique as they now expand into the passenger car business.
Tata Motors have been making global headline in the auto industry lately: the largest news being their
acquisition of jaguar and Land Lower Ford ‘Tata paid2.3 billion dollars to Ford for the two brands that
cost ford 5.3 billion (Carty.USA Today )this is major step for the company because is catapults them into
luxury are business it they are note known for at this time. Tata like many new business it acquires ,is
allowing this new segment of he business to be run by previous management since they have more
experience in the luxury automotive business . Tata ell give us some space. They want us to run our
business. Be a premium British car company “(Mike O’Driscoll managing director of Jaguar.)This is yet
another large acquisition for Tata Motors group and could create great success for the company in the
near future.
Furthermore, Tata Motors made another large announcement reading their progress in the passenger
vehicles segment. In January they announced that they “would realize a $2.500 car that could replace the
motors, scooters commonly used in the developing countries to cart around whole families (Cary USA
Today). This is a major breakthrough in the automotive industry and shows how far reaching diverse and
competitive the Tata motors group is becoming. Soon they will be serving customers in the high-class
Luxury market while still catering to their older niches developing countries.
MILESTONES
It has been a long and accelerated journey for Tata Motors, India’s leading automobile manufacture.
Some significant milestones in the company’s Journey towards excellence leadership.
1945- Tata Engineering and Locomotive Co ltd (TELCO) is set up as Locomotive maker at the
end of world war II
1954-Company shift to making trucks in a joint venture with Germany’s Daimler Benz.
1961-Exports begin with the first truck begins being shipped to Ceylon (present-day Sri Lanka)
1991-Launch of the first passenger car, the Tata sierra. One millionth vehicle rolled out.
1999-beings production of India’s first fully indigenous passenger car, the Indica.
2003-Tata Motors ltd. Announcers plain to build world’s cheapest car for 100,000 rupees
(1.250pounds or 2.500dollars).
2004-Aquires south korea’s Daewoo commercial vehicle Company and is listed on the New York
stock exchange .
2005-Buys 21 percent take in Spanish bus maker Hispno Carrocera SA. Launches’s min- truck .
2008-Unvells one-lakh peoples car also known as the Nano Acquires Jaguar and land rover .
2009-Tata motors ltd. Launches Nano. Introduction of new world standard truck range.
MARKETING MIX
Marketing in the process by which a product or service originates and is then priced, promoted, and
distributed to costumers. The principal marketing function involve market
research and product development, design, and testing. It is the business activity of presenting product or
services in such a way to make them desirable.
One has to consider promotion that is balanced with a suitable product available a reasonable price.
Provided at all places to maximize the sale of one’s product.
MARKETING MIX PRODUCT PRICE PROMOTION PLACE Brand Pricing &Quality Advertising
Physical distri Packaging Pricing & Quality Advertising Physical Distri Innovations Price &
Alteration Public Relation Quality Discount.
1. Product (Brand, Packaging, Innovations Quality) :
a. Brand: Advertising is often used to make Consumers aware of a product’s special low price or its
benefits. But an even more important function of advertising is to create an image that consumers
associate with a product, known as the brand image.
The brand image goes far beyond the function of the product. The products of Tata Motors have many
special characterstics to them. But when with quality performance and class. All of this meanings have
been added to the product by Advertising. Consumers frequently by the product not only for its
functional but also because they want to be identified with image associated with the brand.
Tata motors have been success in creating and maintaining a professional brand image.
b. Packaging : A vehicle can not have a material packaging. Here packaging refer to and service
assembly of futures. Tata Motors Provide may innovative future to suit the target customers and product
E.g. Tata safari Dicor has Reverse Guide system, which includes a weather-proof camera to help the
driver while revesing the vehicle.
c. Innovation : The various motives behind buying an automobile are Need, Prestige, Comfort, Jealousy
and Novelty. The R S D Department continuously strives to bring new innovations in their product. Tata
have an industrial experience of over 100, years and they are well know with the Psychology of India
customers, who desire more at less price. This experience of Indian customers.
d. Quality Control : Tata Motors have their Quality Control Standards and the QC Dept. ensures that the
customer does not face any inconveniences of defective product.
Products of Tata Motors:
3. Truck –SFC 407, SFC 410, SFC 709, SFC 909, LPT 407,LPT 709, LPT 809, LPT909.
4. Buses – SFC 407 Bus, LD407, LP 407TT, LP 709, LP 909, LP613, LP 713, LPO 1109
TC, LPO1618.
2. PRICE (Pricing strategy, Alteration, Discounts )
a. Pricing Strategy : The prices are fixed keeping in mind a number of factors. Prices have to be at
per with the prices of competitors. Tata Motors give a relative price advantage as compares to its
competition. The various determinates of price are
i. Market Condition
ii. Costs incurred
iii. Profit percentage desired by the Co.
iv. Dealer Profit
b. Alteration :The company does not allow ay alteration to any of the futures of the product. If
there is an alteration which affect the performance of the engine, than the warranty becomes
void. However then may be alteration in the accessories, if desired by the customer.
c. Discounts : Discount are decided by the Co. every Month. Any further discount made from the
profits of the dealer. However, the company may compensate the dealer for the discounts allowd
to a certain extent.
a. Personal Selling : There is minimal personal selling involved. The Seles Office at the dealerships
collect prospective customer databases and perform cold calling to attract customers.
c. Sales Promotion : The purpose of sales promotion is to supplement and coordinate advertising and
personal selling :Sales production are persuade consumers to purchase immediately by providing special
incentive such as cash rebates , prizes, extra product, gifts. The Co. conducts intensive sales promotion
during festival such as festive discounts during Diwali.
d. Public Relation : Public relation is a management function that creates, develops and carries out
policies and program to influence public opinion or public reaction about an idea, a product, or
organization. The Co. takes serious measures to mountain good public relation. The Co. follows
business ethics to ensure that the Customer is satisfied and receives good service whenever and
wherever he desired.
a. Channels of Distribution: In a case of vehicle dealership method distribution and sales is generally
adopted. Tata Motors have also adopted dealership method of distribution of its products. The dealers
purchase products from the Co. at a negotiated price. The MRP is fixed by the Co. and the dealer gets a
profit within these prices. As the Co. deals in commercial and passenger vehicles, there may be a single or
distinct dealerships to market its commercial and passenger vehicles in town. However, if there is a single
dealership appointed, then the commercial and passenger vehicles are managed under Commercial
vehicles Dept. respectively.
Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles in
some cases. To the Govt. Dept. or a private Company. The sales distribution and billings of this are
looked after by the Co. itself.
b. Physical Distribution : The commercial vehicles are manufacture as Jamshedpur Lucknow and
pantagar whereas the passenger vehicles are manufacture at Pune plant. From the plant the finished
product is transported to the dealer ship. The nation-wide dealer sales services and spare parts network
comprises over 2,000 touch points. The dealer ship are strategically located in the in the target and
potential markets to insure efficient and time availability of its products in the market.
ANALYSIS OF MARKETING STRATEGIES
PEST ANALYSIS
POLITICAL:
Since Tata Motors operates in multiply countries across Europe, Africa, Asia the middle East, and
Australia, it operates to play close attention to the political climate but also laws and regulation in all the
countries it operates in multiple countries in while also paying attention regional governing bodies. Laws
governing commerce trade growth and investment are dependent on the local government as well as how
success full local markets and economic will be due to regional national and local influence.
On march 26 ,2008 .Tata Motors reached an agreement with Ford to purchase Jaguar and Land lover. In
order to be capable of this acquisition Tata Motors must have a full of comprehension of the governing
bodies and low regulating commerce in the home country ,the united kingdom, but also in countries
jaguar and land rover operate it.
In accordance, Tata’s headquarters in Mumbai, India strictly controls and regulates operation in all
dealership in addition to knowing and abiding by all labor laws in the multiple countries where they have
manufacturing plants it has to watch political change. This will be especially vital in the future as Tata
Motors continues to expand and grow into new market. ”while currently about 18% of its revenue are
from international business, the company objective is to expand international business both throw
organic and ignorance growth routes” the foundation of the company growth internationally is a deep
understand of economic costumer needs and individual government regulation and laws Although it is the
headquarters ultimate responsibility to make sure each individual office and branch is operating and
abiding by the local laws it will become more important for that duty to be taken care of the regional or
even local level.
ECONOMIC:
Operating in numerous countries across the world. Tata motors function which is the global economic
perspective while focusing on each individual market. Because Tata is in a rapid growth period,
expanding or forming a joint venture in over five countries world-wide since 2004, a global approach
enables Tata motors to adapt and learn from many different regions within the whole automotive industry.
They have experience and resources from five continents across the globe, thus when any variable
changes in the market they can gather information and resources from all over the world to address an
issue. For instance, if the price of the aluminum required to make engine blocks goes up in Kenya, Tata
has the option to get the aluminum from other suppliers in Europe or Asia who they would normally get
from for production in Ukraine or Russia .
Tata Motors also has to pay close attention to shifts in currency rates throughout the world. Currency
fluctuation can equate to higher or lower demands or Tata vehicles which in turn affect profitability. It
can also mean a rise in costs or a drop in returns. But they also have to pay attention to not just the
domestic currency the rupee but also to the dollar, euro, bhat, won, and pound to just name a few. Just
because the rupee is strong against the dollar does not mean it is strong against all the other currencies. To
currency is important because it influences Capital investment will develop and prosper.
SOCIAL:
Undoubtedly. The beliefs opinion and general attitude of all the stakeholders from the in a company will
affect how well a company performs. This includes every stakeholder from the CEO and president down
to the line workers who screw the door panel into place, from the investor to the customer, the culture and
attitude of all this people will ultimately determine the future of a company and weather they will be
profitable or not . for this reason, Tata Motors tends to use integration and rarely separation technique
with foreign companies they acquire.
On the other hand, some economic issues that Tata Motors face must also be looked at from a more
localized perspective. For instance the market in India for cars is much different than the market is much
large or not are limited. Second, you must also take into affect the demographic and the average income
of each market Italian have a higher average income per capita then Indians and Italian citizen tend to
drive large and fancier cars. For this reason the Tata Nano might not do so well in the Italian market. In
summation Tata Motors view the economy from a global perspective with operation across the entire
globe; however they must and placement throughout the different markets Tata Motors acquire Daewoo
Commercial Vehicles company which was at the time Korea second largest truck maker. Rather than
using de-calculation or assimilating Daewoo Tata took an integrated approach, and continued building
and marketing Daewoo’s current models as well as introducing a few new models globally just as it had
been done under Korean management.
With the new acquisition of jaguar and land rover, Tata will have to be careful with how they handle the
acquisition. While land rover is thriving while the helm of Ford. Jaguar was more of trouble child.
“Jaguar cost Ford some $10 billion during its 18 year stewardship and its sales were in head long decline ,
especially in America, its most important market .Industry analysts markets also struggled to see what
value Tata could add that had eluded Ford, and what synergies there could be between a marker of trucks
and basic cars..and two luxury marquees..”. Separation could be good approach for this immediate future
to keep the name of jaguar and land rover distinguishable and associated with the luxury automobile
market. Overall, Tata does a good job of integrating some aspect of their large multinational
conglomerate into new acquisition ;however, the company must also understand that separation from the
name Tata can be valuable in some social areas.
TECHNOLOGY:
Tata Motors and its parent company, the Tata group, are ahead of the game in the technology field. The
Tata Group as a whole as over 20 publicly listed enterprises and operates in more than 80 countries
world-wide. This equates to Tata motors having lots of experience and resources to draw from for
research and development purposes. “The foundation of the company’s growth is the deep understanding
of economic stimuli and customers need, and the ability to translate them into customer-desired offering
through leading edge R&D. Employing 1400 scientists and engineer , Tata Motors’ research and
development team is ahead of pack in Indian’s market and right with the rest of the field internationally .
Among Tata’s firsts are “the first indigenously developed light commercial vehicle.
India’s first Sports Utility Vehicle and, in 1998, the Tata Indica, India’s first fully indigenous passenger
car as well as the increasingly famous Tata Nano. which is projected to be the world’s cheapest
production car. In the automotive industry it is becoming increasingly crucial for manufactures to stay on
top of the technology curve with new problems always rising such as escalating gas prices and pollution
problems. Tata recognizes this and dedicates lots of resources and time into research and development to
be even with or preferably ahead of other competitors, global trends, and changing economies. In all, an
automobile manufacture must change, adapt, and evolve to stay competitive in the automotive game,
and this is exactly what Tata is doing with their rapid growth, and extensive research and development.
STP ANLYSIS
Segmentation:
Geographic:
The region of Tata Motors is whole India with special focus on Type A and
fast growing Type B cities across India.
Demographic:
Psychographic
Behavioral:
Benefits→ Quality, style.
Use status→ Users and first times users.
Readiness stage→ those who are aware, informed, interested
and intend to bye.
Targeting:
Tata Motors has full marker coverage in vehicle market as they covers
market through Differentiated marketing. So Tata Motors typically creates more
total sales. However it also Increases the cost of doing business. That’s why they
lead to both higher sales and higher sales and higher costs.
M1 M2 M3
P1
P2
P3
After
Jaguar &Land Rover they have full market coverage from Common men to Luxuries
loving people.
So. Tata Motors attempts to serve all customers group with all the products.
Positioning:
Tata Motors has many products for various sectors. Company has a product like
Tata ACE which is used as mini-truck. This product is mostly used at agriculture level.
This product can carry below l tone. So, in agriculture sector this mini-truck. makes good
image.
Like that Tata Motors introduce Tata Nano car for lower level people who cannot afford
car but now they can buy a car in Rs 1 lakh.
It also makes a brand image on customer’s mind that Tata Motors is companies where
customer gets that product What he want. After acquiring Jaguar and Land they got
drastic change in people’s mind. Now customer’s has more choose then before
.
When people think to purchase a car then they always think about different
companies like Tata Motors, ’Mahindra and Mahindra, Hyundai Maruti etc. in this
situation customer always think about his likings style and Tata Motors can provide this a
good as possible.
Everybody knows that Tata Motors can give them good product by technical.
So, Tata Motors brand image instead of the people is trustworthy and raliablecar
company.
The Indian Auto Industry
Today
In 2009 estimated rate of growth of India auto industry is going to be 9 percent. Auto
industry in India has been hit hard by ongoing global financial recession. Sales figures of
India automobile industry for December 2008 have shown devastating after effects of
global financial slowdown.
However, there is still hope for automobile industry of India in 2009 as there are certain
factors working in its favor. India is blessed with a middle class. which is getting
economically stronger with every passing day . This class is being touted a potential
consumers for India auto industry in years to come.
Indian economy has been more or less able to withstand tremors of global financial
meltdown. Even though is rat of growth has slowed down considerably, there are hopes
of an economy revival. Work force of auto industry of India is relatively well trained .
All these factors indicate that there could be a decent future of India in days .
Hyundai, a major automobile establishment of South Korea’s has put on large some of
money in India automobile market. As per its estimates, India auto industry could
become a major center for small car manufacturing organization inn future.
There are some other automobile companies of world who have shown interest in India
auto market. Major name among these are General Motors. Skoda auto and mercedse-
Benz these companies have major plans lined up for India auto industry and are likely to
invest a huge among of money in India automobile market.
India domestic auto industry has been passing though a tough phase in 2008 and such a
trend is supposed to continue in 2009 as well. Leading members of India auto industry
have forecast a difficult path in 2009. Shinzo Nakanishi, managing director of maruti
Suzuki, has said that 2009 would present them with a number of challenges.
Overview
Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive
Company ), is a multinational corporation headquarters in Mumbai, India. It is India’s
largest passenger automobile and commercial vehicle manufacturing Company. Part of
the Tata Group, and one of the world’s largest manufactures of commercial
vehicles. The OICA ranked it as the world’s 20th largest automaker, based on figure
for 2006.
Tata Motor was established in 1945, when the company began manufacturing
locomotive. The company manufactured its first commercial vehicle in 1954 in a
collaboration with Daimler-Benz AG, which ended in 1969 Tata Motors was listed on
NYSE in 2004, and in 2005, it was raked among the top ten corporation in India with an
annual revenue exceeding INR 320 billion.
In 2004, it bought Daewoo’s truck manufacturing unit, now know as Tata Daewoo
commercial vehicle , in South Korea. It also, acquired a 21% take in Hispano
Carrocera SA, giving it controlling right in the company.
Tata Motors launched the Tata Nano noted for its Rs 100,000 price-tag, in January
2008.
In March 2008, it finalised a deal with Ford Motors Company to acquire their British
Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and
Lanchester brand names. The purchase was completed on 2 June2008.
1. History:
The company was established in 1945as a locomotive manufacturing unit and later
expanded its operations to commercial vehicle sector in 1954 after forming a joint
venture with Daimler- Benz AG, of Germany.
2. Cars
Tata Indica
After years of dominating the commercial vehicle market in India. Tata Motors entered
the passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle.
After the launch of three more vehicles, namely.
Tata Estate (1992,a stationwagon design based on the earlier TataMobile [1989] a light
commercial vehicle which some people may stiil think of as Tata’s first passenger car) ,
Tata sumo (LCV,1994) and Tata Safari (1998, India’s first sports utility vehicle : In 1998
Tata launched the Indica, the first fully indigenous passenger car of India.
Though the car was initially panned by auto-analysts the ca’s excellent fuel economy,
power full engine and aggressive marketing strategy made it one of the best selling cars
in the history of the Indian automobile industry.
A newer version of the car, named indica V2 was a major improvement over the and
quickly became a mass-favorite. A badge engineered version of the cars was sold in the
United Kingdom as the Rover Cityrover . Tata Motors also successfully exported large
quantities of the car to South Africa. The success of Indica in many ways marked the rise
or Tata Motors, Note: in 1996-7 Tata launched The Tata Sumo Deluxe and the Sierra
turbo variants respectively.
3. Daewoo acquisition
With the success of Tata Indica, Tata Motors aimed to increase is presence worldwide.
IN 2004 it acquired the Daewoo commercial vehicle Company of South Korea. The
reason behind the acquisition were:
4.Joint Venture
Tata MarcoPolo NON-AC City Bus in Delhi. The NON-AC version in only used
in Delhi while AC version are used in Bangalore, Mumbai and Delhi alike
In 2005, sensing the huge opportunity in thr fully builts bus segment Tata Motors
acquired 21% satke in Hispano Carrocera SA, Aragonese bus manufacturing
company and introduce its high-end inter-city buses in the country.
Tata Motors has also forned a 51:49 joint venture with Marcopolo SA a brazil-
based global leader lead, by Brian Behrle, in bus body building. This joint venture
is to manufacture and assemble fully-built buses and coaches tagged at at
developing mass rapid transportation system. The joint venture will absorb
technology and experitise in chassis and aggregates from Tata Motors, and
Marcopolo will provide know-how in process and system for bodybuilding and
bus body design.
5. Tata Ace
Tata Ace, India’s first indigenously developed sub-one ton mini-truck was
launched in May 2005. The Mini truck was a huge success in India with auto-
analyst claiming that ace had changed the dynamics of the light commercial
vehicle (LCV) Market in the country by creating a new market segment termed the
small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice
for transporter and single truck owner for city and rural transport. By October
2005, LCV sales of Tata Motors had grown by 36.6 percent to 88.537 units due to
the rising demand for Ace. The Ace was built with a Lode Body produced by
Autoline Industries. By 2005, Autoline was producing 300 load bodies per day
For Tata Motors. Ace is still one of the number maker for TML, TMS sold the
2,00,000th Ace in August 2008, within 4 years Since its introduction.
Tata Ace has also been exported to several European, South American and African
countries. Electric version of Tata Ace are sold through Chrysler Global Electric
Motors Division.
6. 2007
In 2007, Tata Motors launched several concept models and future design of exiting
models. It also formed joint ventures with various local companies in several
countries to assemble Tata cars. Tata Motors launched a re-designed version of on
Tata Xenon TL during Motor Show Bologna which would be assembled in
Thailand and Argentina. A pick-up variant of Tata Sumo was also model in
India Southeast Asia, Europe, South Aftica, Turkey and Saudi Arabia. Tata
Motors also unveiled newer model of Tata Indigo and Tata Elegante concept -car
during the Geneva Auto Show.
Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s
diesel engine technology. Tata Motors is looking to extend its relationship with
Fiat and lveco to other segments like the Global Pick-Up, program. The launch of
the Global Pick-Up’ will mark the entry of the company into developed markets
like Europe and the United States. The project was initially a collaboration
between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but
later Tata Motors decideb to work with lveco as Daewoo’s design was not in sync
with the needs of sophisticated European customers,. The company has formed a
venture with Thailand’s
Thonburi Company an independence auto assembler, in which Tata will hold a
70% stake.
7. 2008 on words
One CAT is a five seat vehicle with a 200 liter (7.1 cu ft ) trunk. With full tanks it
will run at 100km/h (62mph ) for 90 kilometers (56mi) ranghe in urban cycle. It is
actually a dual fuel car but it is more effient than any present Hybird cars.
9. Tata Nano
Tata Nano
Tata has developed a car, named Tata Nano, that ains to sell in 2008. It is
the least expre) The company ssive production car in the world: the price is
about Rs 100,000 (USD $2,000) The company unvalid the supermini car
during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi.
Bajaj Auto and Mahindra-Renoult have plans to launch cars in this price
range.
Tata has faced controversy over developing the Nano. Some
environmentalists are concered that the launch of such a low-price car cold
lead to mass motorization in India with adverse effect on pollution and
global warning. There was also strong opposition to the compulsory
acquisition of land for the professed car factory in Sanand because of the
problem faced I West Bengal.
In addition to the brands, Tata Motors has also gained access to 2designs
centers and 3 plans in U.K. the key acquisition would be of the intellectual
property rights related to the technologies.
Tata Motors unveiled the electric version of passenger car Tata Indica and
commercial vehicle Tata Ace. Both run on lithium batteries . the company
has indicated that the electric Indica would be launched loccaly in India in
about 2010, without disclosing the price. The vehicle would be launched in
Norway in 2009.
Tata Motors UK, subsidiary. Tata Motors European Technical Center.
Has bought a 50.3% holding electric vehicle technology firm Miljobil
Grenland/innovation of Norway for US$1.93 M.
The purchase of jaguar cars expected to help give Tata Motors foothold in
European and American markets.
With the unveiling Tae Tata Elegant during Geneva a Motor show Tata Motors
revealed its intention to the center sedan and sports car markets.
Tata Indica during auto exhibition in Bankok, Thailand, Indica and Xenone
TL will be assembled in Thailand and Argentina.
Prima was unveiled during the Geneva A Motor show in 2009. The Luxury Sedan
was designed by Pininfrina and has marked the enery Of tata Motors international
sedan market. The car is to be sold in India by 2013 and around the world by 2015.
Tata Motors has expended its production and assembly operation to several
other countries including South Korea. Thailand, South Africa and
Argentina and is planning to set up plans in Turkey, Indonesia, and Esteem
Europe.
On march 2008 Tata Motors agree to purchase Jaguar Cars and Land Rover
from Ford Motor in deal worth $2.3 Tata Motors has also acquired from
Ford the rights to three other brand names: Daimler, launchester and Rover it
was rumoured in 2008 that Tata was in negotiation along with Fiat, General
Motors and Renoult Nissan as a possible suitor for the rapid decling
Chrysler which is currently owned by Cerbures Capital Management 14,
present global challenge.
Plastic car production: Tata Plans on producing a car that is made of nearly
100% plastic.
Ashok layland:
Acquisition of Czech republic based Avia Ashok
Leyland (All) recently acquired the trucks unit of Czech
republic based Avia for Us435M. avia manufactures 6-9
tonne LCVs and has a capacity of 2,000 unite per annum. The
acquisitions has given All direct access to an enter into
technology agreements with Hino Motors of Japan and ZF of
Germany to complement its in-house R&D effort and
developing complementery components and aggregates.
Tata Sierra
Tata Estate
Tata Sumo Specio
Tata Safari
Tata Indica
Tata Indigo
TataWinger
Tata Nano
Tata xenon XT
2.Concept Vehicles
Tata Cliffrider
Tata Ace
Tata TL/ Telcoline /207DIpickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809EX and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium buses11)
Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata starbus (Medium bus)
Tata Globus (Low floor bus)
Tata Macropolo Bus (Low floor bus)
Tata 3015 (Heavy truck)
Tata 3118 (Heavy truck)
Tata 3516 (Heavy truck)
Tata 4923(Ultra heavy truck)
Tata Novus(Heavy truck designed by Tata Daewoo)
4.Military vehicles
Tata ATG life Insurance Company Limited and Tata AIG General Insurance
Company Limited (collectivity Tata AIG) are joint venture of the Tata Group and
American international Group. Inc, (AIG) Tata AIG combines -**the strength and
integrity of he Tata Group with AIG’ s international experitise and financial
strength.
Tata Motors is the largest automobile company in this part of Asia. The company
has grown in big way in recent years and has embarked on expantion and
acquisition programs.
As part of it, Tata Motors has also strengthened and expanded on its finance wing
Tata Motors Finance that provides for loan and financing option to the customer
buying Tata Motors automobile Tata manufatucnance today boast of 109
branchese in 22 Indian states.`
Some of the term associated with the Tata motors finance are as follow:
The company began in 1945 and has produced more than 4 million vehicles. Tata
Motors limited is the largest car producer in India. It manufactures commercial
and passenger vehicle, employs in excess of 23,000 people.
The company has the strategy in place for the next place of its
expansion. Not only is it focusing upon new product and
acquisition , but it also have a programme of intensive
management development in place in order to establish its
leaders from tomorrow.
WEAKNESS
The company’s passenger car products are based upon 3rd and 4th generation
platform, which putt Tata Motors limited at a disadvantage with competing
car manufacturers.
Despite buying the Jaguar and Land Rover brands; Tat has no t got a
foothold in the luxury car segment in its domestic, Indian markets. Is the
brand associated with commercial vehicle and low cost passengers cars to
extend that it has isolated itself from lucrative segment in a more inspiring
India?
One weakness which is often not recognize is that in English the word
‘TAT’ means rubbish. Would the brand sensitive British consumer ever buy
into such a brand? Maybe not , but they may be buy into Fait, Jaguar, and
Land Rover.
OPPORTUNITIES
In the summer of 2008 Tata Motor’s announced that it had
successfully purchased the Land Rover and Jaguar brands from Ford
been added to its portfolio of brands , and will undoubtedly off the
company the chance to market vehicles in the luxury segment.
NANO is the cheapest car the world- retailing at little more than a
motorbike.
The new global track platform is about to be launched from its Korean
plant. Again, at a time when the world is looking for environment
friendly transport alternative, is now the right time to move into
segment? The answer to this question is that new and emerging
industrial nation such as India, South Korea and China will have the
thirst for low cost passenger and commercial vehicle. These are the
opportunities , however the companies has put in place a very
proactive corporate social responsibilities committee to address
potential strategies that will make is operation more sustainable.
THREATS
Tata Motors has taken numerous critical business decision since the last
one year. The endeavors include joint Venture’s New product Launches, setting up
of new plans break-through into new markets etc.
Joint Venture
On 5th may 2006 Tata Motors India and Marco polo Brazil,
announced joint Venture to manufacture fully builts buses and
coachese for India and & market abroad. This Venture helped
Tata to cater to the growing demand in India and Abroad.
Critics of the car of the have questioned its safely in India (where reportedly
90,000 people are killed in road-accident every year) and have also critcised the
pollution that it would cause (including criticism by Noble Piece Prize winner
Rajendra Pachauri). However Tata Motors has promised that it would
deffinaitly release Nano’s eco-friendly models alongside the gasoline model.
The Nano was originally to have been manufactured at new factory in Singur,
West Bengal, but increasingly violent protest forced Tata to pull out October 2008.
Price
Tata initially targeted the vehicle as the least expensive car in the world aimis for a
starting price of 100,000 rupees or approximately US$2000 (using change rate of
march 22, 2009) 6yeas ago despite rapidly rising material price at the time
As of August 2008 material costs had risen from 13% to 23% over the car
development and Tata faced the choice of:
Model version
The Nano European . European version of the Tata Nano has all of the
above plus a large body, bigger 3-cylinder engine, anti-lock breaking
system (ABS) and meets European crash standers and emission. The
base model will have fixed seat, expect for the driver which will be
adjustable, while the deluxe and luxury models will get air
conditioning and body colored bumpers.
The Toyota Qualis and now complete with Chevrolet Tavera. The discontinuation
of Qualis to launch the Toyota innova advantageous to tatat sumo. The sumo has
seen the series of changes in term of refinement in this decade.it has been the
favourite choice for cab owner, as it rugged and affordable.
The Tata sumo has been enjoying itsd position in the MUV market since 1994.it
has stiff competition with new sumo victa has been portrayed as a family lifestyle
vehicle, but in fct carry over of the old sumo, wit some cosmetic changes.
The sumo comes in nine victa variants. CX10/7 str, DI CX 7/9/Str, DI GX7/9Str,
EX 10/7 Str, GX 7Str, GX TC 7 Str, and LX 10/7 Str. All variants, expect the
vital DI variant, are powered by a 2 litre Inline 4 diesel engine. The GX and GX
TC variant get a 2 litre turbocharged diesel engine that generate 89 bph. The Victa
DI variant get a 3 litre turbocharged diesel engine. Refinement, both internal and
external , is evident across the variants.
Tata’s latest three variants under the ‘Sumo grande’ category are LX , EX,
AND GX available in two seater , 7 seater , 8 seater Confriguration. Sumo
grande boasts of a powerful 2.2 litre direct injection common rail ( DICOR)
engine.
INDIGO LX DICOR
Tata Indigo DICOR on the other hand feature manually operate with chrome strip
outer rear view window, black dials with chrome ring & star check as the new
pattern for its console & AC fascia.
INDIGO LS DICOR
Tata INDIGO LS DICOR features manually operate outer rear view mirror ,
black dial , & Benz silver as the new patternfor console & AC fascia. It has no
mounted LCD screens.
ENGINES
Noticing this huge potential Tata motors now plans to tap the rural market,
60,per cent of which runs on cash. Tata motors ltd, are working on
strategies to make inroads into these markets.
Hiring right talent is the greatest challenge in business environment and new
and innovative hiring strategies are the need of the hour if Indian companies
have to succeed in the changing global scenario. With Indian companies
entering the phase of global mergers and acquisitions already there is a shift
in standard hiring practice the compensation being offered sharing the vision
of the company and transmiting a sense of passion in the company to the
prospective employee will go a long way in attracting the right talent.
Some of the innovative hiring strategies could including hiring teams and
not just individuals and offering education and placement packages Over the
past few years HR is witnessing a dramatic increasing in lateral hiring of
professionals with some years of experience, hiring from the pulic setor as
well people looking for second careers. The challenge facing many firms is
to hire with relation.
A smart and sophisticated work force will be the most important corporate
resource over the next 20 the demand for this resource is sure to go up
however the supply is already dwindling.
Human resource manger should cut incentives of individuals, for ex-if marketing
manager used to get incetives for hotelling 2000 per day, it should be cut down to
1200 per day as already due to recession he will get equal amount of service by
paying less price.
They have not cut salaries of employee. But they have reduce the extra working
hours which means the work which is to be done in to hours has to be completed in
two hours. They have reduce delays in work.
Operation strategies
Quality Management
Inventory Management
PRODUCT LAUNCHES:
The company launched the variety of new product in the last one
year adding and diversified its portfolio and commercial and
passenger vehicles.
PLANT SETUP
o ON 27th july 2006 , Tata Motors – hitachi JV , telcon setup new plant at
kharagpur in West Bengal.
o On 25th august 2006, it set up a new subsidiary for its vehicles financing
operations.
The Indian auto industry is highly competitive with a number of global and
Indian auto companies present .
Key Players in the Indian auto industry passengers cars and CVs
LIQUIDITY POSITION
PURPOSE OF LIQUIDITY RATIOS: The liquidity ratio helps to
determine a companies ability to meets its short term liabilities. It can be
in the form of the current ratio, liquid ratio ,absolute ratio or the
operation cycles. While the current ratio, liquid ratio and absolute cash
ratio provide information about the company ;s ability to payoff the
short term obligation , the operation cycle provide qualities information
about hoew quickly the company can convert its stock into cash.
Company Analysis:
PROFITABILITY PSITION
A class of financial metric that are used to access the business ability to generate
earning as compared to its expense and other relevant cost incurred during the
specific period of time , for most of these ratio , having higher value related to a
competitor ratios or the same ratio from aprevious period is indicative that the
company is doing well.
These ratio measure how much out of every rupee of sales a company keeps
as earnings. The two determinant of profit margin are
OPERATION PROFIT
PBIT
It is interesting to note here that while the Tata Motors has a higher operating
profit margin of 12% as compared to M&M’s 9%, its net profit margin
(PBIT/SALES) of 10% is much lower than M&M’s 15%. This implies that a large
portion of Tata’s profit are from its operation while M&M’S has a considerable
amount of non operating income .
MARKET POSITION
PE ratio MV/BV is lowest among three companies for Tata Motors,
despite the the fact that its earning and book value is higher than
M&M. the reason as to why this ratio are low is clearly its low market
value as compared to its competitors.
The MV/BV ratio for M&M is 5.2 which is much higher than Tata’s
3.73 despite the fact that M&M’s BV per share is Rs. 148.11 which is
lower than Tata Motor’s BV of Rs. 198.66 per share
CONCLUSION
Today, business around the world, both large and small, cannot ignore the impact
that the global company is having on their performance. Globalization, the internet
and information transparency have led to an increasingly mobile workforce, ever
more fickle customers, and rapidly changing technologies and business models.
On result of this seemingly inexorable trend is that companies are less able to
predict –let alone control-the short term shape of their own markets.
As a result more and more organization are choosing to adopt a marketing led
philosophy to enable them to win market share and capture and retain the hearts
and minds of current and prospective customers.
These complex issue heighten the need for effective marketing whilst expanding
its scope beyond the ‘marketing function’. Put simple marketing is no longer the
sole prerogative of single ‘functions’.
Even if leadership on marketing comes from the last function , together with the
framework within which marketing strategies are conceived, developed , planned,
executed, reviewed and improved.
Tata Motors is able to maintain, as well as, increasing their marketing share by
capitalizing on their core competencies.
Tata Motors is active, competitive, and dynamic in all aspect of the automatic
industry, which means that there must be many different activities going in all
areas of the company.
One way that Tata Motors has done this is embedded in their company structure
and philosophy. Another core competency that Tata Motors holds is being located
in the India.
This location has allowed them to understand not only the Indians market but also
the dynamic of emerging and developing markets.
This market understanding and knowledge allow Tata Motors to manufacture their
product at lower cost , sell them to emerging market while making profit as well as
take advantage of the strong labor base in India.
From this project we conclude that the marketing strategy of TATA MOTORS
are according to the market. They always look after their customers and their
needs. They make changes in their product what customer want ,that’s why most of
the customers, are satisfied from the company.
Company wants that every people can purchase their product so, they have
product from low price to high price with number of different styles and design
without compromising product qualities.
Company is also providing good services to the customers . company has its own
show rooms and services centers in different places so customers can’t face many
difficulties to purchase their product.